OREANDA-NEWS. On 20 March 2008 was announced, that the Government of the Russian Federation is introducing duties on exports of potassium chloride destined for countries outside the CIS members of the customs union with the Russian Federation. The duty applicable to Uralkali's potassium chloride is 5% of the declared customs value, which Uralkali expects to be charged on almost all of Uralkali's potassium chloride exports.

Resolution No 159 dated March 11, 2008 (the "Export Duties Resolution"), which introduces the export duties, becomes effective one month following its official publication and is effective until April 30, 2009. The Export Duties Resolution imposes higher duties of 8.5% on exports of certain other types of fertilizers, such as nitrogen fertilizers and fertilizers containing two or more of potassium chloride, nitrogen and phosphorus.

Uralkali does not expect the Export Duties Resolution to have a materially adverse impact on its business, prospects, financial condition or strategy. However, Uralkali expects the Export Duties Resolution to be an additional factor affecting prices of potassium chloride in the international market.